Investment Strategies 03 (Jul 13 - Jun 19)

Re: Investment Strategies 03 (Jul 13 - Jun 19)

Postby winston » Sun Nov 03, 2019 5:20 pm

5 ways to beat the market — from a fund manager who’s done it for years

By Michael Brush

Focus on companies with predictable growth, make big bets, and be patient

1. Look for the proverbial self-reinforcing fly wheel
2. Look for what the market gets wrong, then bet the other way
3. Don’t get shaken out of good positions
4. Put money in the path of mega-trends
5. Make big bets


Source: Market Watch

https://www.marketwatch.com/story/5-way ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Strategies 03 (Jul 13 - Jun 19)

Postby winston » Tue Nov 19, 2019 2:03 pm

This fund manager consistently beats the stock market by exploiting your foibles

By Michael Brush

1. Exploit fast money dreams
2. Exploit short-term thinking
3. Buy pricing power
4. Buy brand power
5. Hitch a ride on global growth


Source: Market Watch

https://www.marketwatch.com/story/this- ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Strategies 03 (Jul 13 - Jun 19)

Postby winston » Tue Dec 03, 2019 8:48 am

A Winning Checklist for Finding the Best Stocks to Buy

1. Double-digit sales growth. "You have to see robust top-line growth in order to get really dramatic bottom-line growth."

2. Earnings growth of 20% or better for at least three years. "It's natural for people to think that after three years of 20% growth, the big move is already behind the company.

"But companies tend to get in a profitable niche, find an industry where they've got a competitive advantage and exploit it... and they have several years of extraordinary growth. That's why we want at least three years of 20% or better earnings growth."

3. Earnings growth of 25% or better in the most recent quarter. "We want those earnings to even be accelerating in the most recent quarter, so for the most recent earnings, we want to see 25% or better growth in net income."

4. Return on equity of 17% or better. "Even though this is a growth methodology and Warren Buffett uses a value methodology... he says the single most important criterion when he's evaluating companies for purchase is whether they have a high return on equity; that's how important it is. So we insist on that as well."

5. Level of innovation. "A perfect example of this is Apple (Nasdaq: AAPL). It came out with the iMac, iPod, iTunes music store, iPhone and iPad, and new iterations of all these products..."And because it was a great innovator, that led to strong sales growth, which led to strong earnings growth, which led to the stock making a dramatic move upward."

6. High-quality management. "Just as every great sports franchise needs a Vince Lombardi or Bear Bryant or Phil Jackson or who-have-you to get the maximum out of the team, so do you have to have world-class management to get the best performance out of a stock."

7. Timeline (within eight years of IPO). "Most of the companies that we buy are within eight years of their IPOs. They tend to be young, entrepreneurial companies and midcap stocks."

8. Share buybacks. "When a company announces a big buyback, management is essentially betting their careers that the stock is undervalued; that's a very strong indicator.

9. Technical factors. "You never want to buy into a company that goes through what I call a 'waterfall drop.' That's when the stock's trading up and all of a sudden it goes down due to a bad piece of news.

"Studies show that stocks that have a waterfall drop, six months later they're significantly lower than they were the day they dropped. So you never want to fight the technicals on the stock, and what you want to see is a stock rising on good volume."

10. Institutional support. "The vast majority of the volume that takes place in the New York Stock Exchange and the Nasdaq is not individual investors like you and me... "It's big pension plans and mutual funds and hedge funds and endowments, and you don't want to be buying the stocks that these companies, these huge investors, are selling."

Source: The Oxford Club
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